EPF outsources RM117.56bil to external fund managers

KUALA LUMPUR: The Employees Provident Fund (EPF) has outsourced a total of RM117.56bil to external fund managers as at Dec 31, 2018, an increase of 2.62%, as compared with RM114.56bil at the end of 2017. 

This allocation, invested across both equity and fixed income instruments, represented 14.10% of the EPF’s total investment assets.

“As the EPF’s fund size grows, we will continue to outsource a portion of our funds to external fund managers as part of our diversification programme and to better manage the performance of our assets,” chairman Tan Sri Samsudin Osman said in a statement Thursday. 

The fund said beginning this year, the EPF’s newly-formed external fund managers department would streamline the monitoring of external fund management across equity and fixed income asset classes, to tap into external fund managers’ specialised range of knowledge, skillsets and exposure in order to deliver sustainable, value-added returns over the long run.

Samsudin said the restructuring would provide greater clarity to the EPF’s external fund management activities and make it more effective to monitor performance, communicate and execute EPF’s investment strategies in line with its core investment philosophy of earning superior risk-adjusted returns with a long-term perspective.